A US Company Sells Merchandise to a Foreign Company Denominated in in U.S

question 26

Multiple Choice

A U.S. company sells merchandise to a foreign company denominated in U.S. dollars. Which of the following statements is true?

• A) If the foreign currency appreciates, a foreign exchange gain will result.
• B) If the foreign currency depreciates, a foreign exchange gain will result.
• C) No foreign exchange gain or loss will result.
• D) If the foreign currency appreciates, a foreign exchange loss will result.
• E) If the foreign currency depreciates, a foreign exchange loss will result.

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Definitions:

Financial PR

A branch of public relations focused on managing the communication and reputation of an organization in the financial community and with investors.

Communications Department

A division within an organization that manages internal and external communication, including PR, media relations, and employee communication.

PR Activities

Tasks and initiatives undertaken to manage and influence public perception and maintain a favorable image of an organization or individual.

Public Communications Office

A department within an organization responsible for managing and disseminating information to the public and media, ensuring clear and effective communication of the organization's messages.